TIOL-DDT 1610 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> </head> <body> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font size="3" color="#663399">TIOL-DDT 1610 </font><br> 18.05.2011<br> Wednesday</strong></font></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">FTP - Minimum Export Price of Bangalore Rose Onions and Krishnapuram Onions </font></strong></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">GOVERNMENT</font></strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"> has amended Notification No 36(RE – 2010)/2009-2014 dated 23.03. 2011 by which Minimum Export Price (MEP) of Bangalore Rose Onions and Krishnapuram onions will be USD 350 per Metric Ton F.O.B. It was USD 600 per Metric Ton as notified on 23.03.2011.</font></p> <p><a target="_blank" href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not046.htm"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">DGFT Notification No. 46/(RE – 2010)/2009-2014, Dated: May 16, 2011 </font></strong></a></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Income Tax - Rate of Interest for EPF Notified at 9.5 percent </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>AS</strong> per para 6(b) of Part A of the Fourth Schedule to the Income Tax Act, interest credited on the balance to the credit of the employee (in respect of a recognized Employees Provident Fund) in so far as it is allowed at a rate exceeding such rate as <strong><em>may be fixed by the Central Government</em></strong> in this behalf by notification in the Official Gazette,</font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">shall be deemed to have been received by the employee in that previous year and shall be included in his total income for that previous year, and shall be liable to income-tax. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">This means that any interest in excess of the rate prescribed by the government will be taxable. Now the Government has fixed this limit of interest as 9.5% with effect from <strong>1.9.2010</strong>. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">This rate was earlier fixed at 8.5% with effect from <strong>1.9.2010</strong>, by Notification No. 69/2010, DATED 26-08-2010.</font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Now is it amended retrospectively with effect from 1.9.2010? Maybe CBDT should clarify. </font></p> <p><a target="_blank" href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2011/it11not024.htm"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Income Tax Notification No. 24/2011, Dated: May 13, 2011 </font></strong></a></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Exchange of Information on Taxes With Bahamas </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>INDIA</strong> has signed an agreement with the Government of Bahamas on 11 th February 2011, for the Exchange of Information with respect to taxes. As per this agreement, taxes include taxes of every kind and description imposed by the Central Government or the Governments of political subdivisions or local authorities, irrespective of the manner in which they are levied; </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">As per the agreement, the competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement, and shall be treated as confidential. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information. </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The Central Government has directed that all the provisions of the Agreement between the Government of the Republic of India and the Government of the Commonwealth of the Bahamas for the exchange of information with respect to taxes, shall be given effect to in the Union of India with respect to all matters described in article 1, for all taxable periods beginning on or after the date of signing of the Agreement (i.e. the 11th day of February, 2011) </font></p> <p><a target="_blank" href="http://taxindiainternational.com/content.php?qwer43fcxzt=MTIxNw=="><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Income Tax Notification No. 25/2011, Dated: May 13, 2011 </font></strong></a></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Exchange of Information on Taxes With Isle of Man </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>A</strong> similar agreement was signed with the Government of the Isle of Man for the Exchange of Information with respect to taxes, on 4 th February 2011. In this agreement taxes means taxes of every kind and description imposed by the Central Government, irrespective of the manner in which they are levied. </font></p> <p><a target="_blank" href="http://taxindiainternational.com/content.php?qwer43fcxzt=MTIxOA=="><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Income Tax Notification No. 26/2011, Dated: May 13, 2011 </font></strong></a></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Will State Election results affect GST? </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>ASIM</strong> Dasgupta, the chief of the Empowered Committee of State Finance Ministers, is no more the Finance Minister of West Bengal. Not only has his party lost the elections, but also he has lost the election to the Legislative Assembly. For the last four years, Dasgupta had been efficiently managing the committee and in association with Union Finance Minister Pranab Da has done tremendous work in taking the cause forward. But now they will have to find a new pilot. Interestingly Asim was defeated by FICCI Secretary General Amit Mitra. Will Mamata Didi make him the Finance Minister and then will he be able to lead the GST team. As a business leader, Mitra should be able to effectively lead the GST team. Politics of taxation is a hard reality! </font></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Is Corruption an issue in our Elections? </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>IS</strong> Anna Hazzare a middle class dream – a dream of those who don't vote; those who don't count; those who are agitated around coffee tables, taxable bars and TV channels? </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">The outgoing Chief Minister of West Bengal was reported to be personally honest; he lost the election. Analysts say that Karunanidhi lost due to the 2G Scam, but Jayalalithaa is not exactly known for her impeccable integrity. And she won. Maybe there was no choice. In Andhra Pradesh, all kinds of charges of corruption were made against Jaganmohan Reddy and it was accused that he had amassed wealth of over a Lakh of Crores. And he won the election with a majority of over five Lakhs votes! </font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2">Incidentally the States are opposing the GST, not because of the corruption involved, because political corruption is now not cuts from bureaucrats, but they have other sources as the various schemes and scams have revealed. </font></p> <p align="center"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#006600">Corruption Balanced </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>A </strong>judge was paid Rs. 6 lakhs by one lawyer and Rs. 5 Lakhs by the opposing lawyer to decide a case favourably. The honest judge announced in the court that one lawyer paid him Rs. 6 lakhs and another paid him Rs. 5 lakhs to decide the case. “so I am returning Rs. 1 Lakh to the lawyer who paid me Rs. 6 lakhs”, he said. “now that there is a level playing field, I call upon the lawyers to argue the case on merits”, he added. </font></p> <p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong><font color="#006600">Jurispruden</font><font size="5" color="#FF6633">tiol</font><font color="#006600"> – Thursday's cases</font></strong></font></strong></font></p> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><a></a><img align="left" border="0" hspace="5" height="84" width="100" alt="Legal Corner Icon" src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg"><strong><font color="#663399">Service Tax</font></strong></font></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6633">Value of diesel and explosives supplied free of cost to service provider prima facie includible in taxable value for payment of service tax –Pre-deposit of Rs. 10 crores ordered: CESTAT </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>GROSS</strong> amount' referred to in Notification 1/2006-ST has to be the same as referred to in section 67 of Finance Act since a notification cannot grant exemption from tax on a value higher than the taxable value on which tax is otherwise due – Benefit of Notification No. 12/2003-ST also not available as there is no ingredient of sale of goods by service provider to service recipient. </font></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#663399">Income Tax</font></strong></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6633">Whether, if assessee ends up making excess TDS deposit in previous year, it is entitled to make suo moto adjustment of same against liability arising in next FY - NO, rules ITAT </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>THE</strong> issues before the Tribunal are - Whether, if assessee ends up making excess deposit of TDS in the previous year, it is entitled to make suo moto adjustment of the same against liability arising in next financial year and whether such excess payment of tax vests any right in assessee for refund or adjustment of the same. ‘NO', is the answer of the Tribunal. </font></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#663399">Customs</font></strong></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6633">Exemption to goods required for petroleum operations by ONGC - DGH cannot cancel essentiality certificate: HC</font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong>THE</strong> obligation cast upon the DGH is to ascertain as to whether the goods sought to be imported are actually required for petroleum operations or not. The Exemption under Notification No.21/02 is available only if the goods sought to be imported are required for petroleum operations and not otherwise. Whether, benefit of the Notification is available to the importer or not, is a question to be considered by the Customs Authorities and not by the DGH. Therefore, the DGH could not have cancelled the Certificate on the ground that the benefit of the Notification is not available to the importer. </font></p> <p align="justify"><strong><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#663399">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6666">Until Tomorrow with more <strong>DDT</strong></font></p> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6666">Have a Nice Time. </font></p> <div align="justify"><font face="Verdana, Arial, Helvetica, sans-serif" size="2" color="#FF6666">Mail your comments to</font><font face="Verdana, Arial, Helvetica, sans-serif" size="2"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font> </div> </body> </html>